Defi Infrastructure Layer

Definition ∞ DeFi Infrastructure Layer refers to the foundational technological components that support the operation and development of decentralized finance applications. This layer includes blockchain networks, oracle services, data indexing protocols, and cross-chain communication bridges. It provides the essential services and frameworks upon which higher-level DeFi protocols are built. A robust infrastructure layer is crucial for the scalability, security, and interoperability of the entire DeFi ecosystem.
Context ∞ Strengthening the DeFi Infrastructure Layer is a primary focus for developers aiming to support wider adoption and increased transaction volume. Current debates address the trade-offs between decentralization and performance, as well as the challenges of cross-chain compatibility. Future advancements will likely involve the development of more efficient scaling solutions and enhanced security measures to protect against systemic risks.